DCA Strategy Framework

What is the DCA Strategy Framework?

The DCA Strategy Framework on NODO is designed to make your deposits and withdrawals safer and more profitable. Instead of moving all your money in or out at once, it spreads transactions across multiple steps over time.

This approach is called Dollar-Cost Averaging (DCA). It helps protect your vault from sudden market swings while maximizing long-term fee rewards.

Key Benefits

1. Stable Growth – Your deposits are spread out, avoiding unlucky market timing.

2. Protection in Volatile Markets – The system slows down or pauses when conditions are risky.

3. Flexible Withdrawals – You can choose between:

• Immediate Withdrawal (fast, market price)

• DCA Withdrawal (slower, better average exit price)

1. Better Results – On average, vaults with DCA outperform static LPs in:

• Higher fee collection

• Lower risk in volatile markets

• Stronger long-term growth

How It Works

The framework adjusts automatically based on vault conditions and deposit size:

1. Small Deposits (<15% of vault)

   1. Deployed gradually over 1–2 days.

   2. Balances steady growth with speed.

2. Large Deposits (≥15% of vault)

   1. Deployed more cautiously over 2–3 days.

   2. Smaller portions each step to reduce risk.

   3. Recovery After Stop-Loss

3. Recovery After Stop-Loss

   1. Waits until the market is safer.

   2. Re-enters slowly over 3–4 days to protect capital.

4. Vault Rebalancing

   1. Moves capital from weaker pools into stronger ones

   2. Done in stages to avoid slippage.

5. Withdrawals

   1. Immediate: 100% withdrawal in minutes.

   2. DCA Withdrawal: Step-by-step exit over 6–24 hours for better average prices.

Vault Risk Levels

Each vault has its own protection level:

• SUI-USDC Vault – Most conservative, tighter risk limits.

• DEEP-SUI Vault – Higher target returns, accepts more volatility.

• WAL-SUI Vault – Similar to DEEP-SUI, higher risk/reward profile.

The AI adapts based on the vault type:

• Conservative vaults pause earlier when markets are risky.

• Higher-return vaults stay active longer but still pause if things get too dangerous.

What Makes It Smarter Than Normal DCA?

• Market Intelligence (Safety Score): The AI checks the market every few hours and only acts if conditions are safe.

• Adaptive Timelines: Deposits and withdrawals can take 6 hours, 24 hours, or even 3 days depending on the market.

Built-In Protection: Never risks more than 1% in a single operation, and automatically pauses in extreme conditions.